Taiwan's Foxconn, recognized as the largest contract electronics manufacturer globally, surpassed expectations by achieving its highest-ever revenue for the third quarter, driven by robust demand for artificial intelligence (AI) servers.

The revenue for the primary assembler of Apple's iPhones surged by 20.2% year-on-year, reaching T$1.85 trillion ($57.3 billion).

Foxconn stated in a press release on Saturday that "the result exceeded the company's original expectations of significant growth."

This performance also outstripped the T$1.79 trillion estimate from LSEG SmartEstimate, which prioritizes forecasts from analysts with a proven track record of accuracy.

The strong demand for AI servers significantly contributed to the revenue growth in its cloud and networking products division, with Nvidia being one of its notable clients.

In the smart consumer electronics sector, which encompasses iPhones, there was notable quarter-on-quarter growth attributed to new product launches, although year-on-year performance remained stable.

The third quarter typically marks the period when Taiwan's technology firms ramp up production to supply smartphones, tablets, and other electronics to major clients like Apple in preparation for the year-end holiday season in Western markets.

In September alone, total revenue reached T$733 billion, reflecting a 10.9% year-on-year increase and marking the second-highest level recorded for that month.

Foxconn expressed optimism about its outlook for the current quarter, stating, "As we enter the peak season in the second half of the year, we expect our operations to gradually gain momentum."

The company indicated that the fourth quarter is anticipated to align closely with current market expectations, though it did not provide specific numerical forecasts.

Foxconn's stock has surged by 86% this year, significantly outperforming the broader Taiwan market's 24% increase. The shares rose by 3.7% on Friday, defying a 0.4% decline in the benchmark index ahead of the revenue announcement.

The company is set to release its complete third-quarter earnings on November 14 and has planned its annual Tech Day for October 8-9, an event typically featuring announcements of new products or partnerships.